Rates surged after another big.........>

US TSY FLOWS: Rates surged after another big employ data figure, NFP gained only

75k in May vs. +180k est (on the heels of Wed's ADP private payroll miss of only

+28k) and down revsn's for April (now +224k) and March (now +153k), Net -75k.

Delayed react for futures ESM9 before climbing +40.50 to new 4 week high of

2886.25. Implied vol firmer but well off first half highs; VIX +.34 to 16.27

late.

- Heavy front end support as June rate hike chances breached 40% -- debate is on

while Fed enters media blackout at midnight through June 20, day after next FOMC

annc. June Eurodollar futures and options expire next Friday, however. Various

dealers, trading desks suggest July more likely time to cut while others suggest

50bps cut by summer.

- On tap for Monday: Apr JOLTS job openings level; May ETI; Jun NY Fed

expectations survey.

- The 2-Yr yield is down 3.1bps at 1.8474%, 5-Yr is down 3.3bps at 1.8496%,

10-Yr is down 3.5bps at 2.0827%, and 30-Yr is down 4.2bps at 2.5713%.